Customer Acquisition Cost (CAC) is the total cost it takes to acquire a new customer. CAC is calculated by dividing the total cost of acquiring a new customer by the number of new customers acquired during that time period.
CAC is a broad metric that is used to determine how much it costs your company to acquire a new customer. This metric is used to determine whether or not your company is spending too much money on acquiring new customers.
CAC is calculated on a per-customer basis, and is usually calculated on a monthly basis.